Semiconductor Industry's Uphill Battle Towards Net Zero

The Semiconductor Climate Consortium (SCC) is spearheading a bold initiative to significantly reduce the semiconductor industry's carbon emissions. The ambitious plan aligns with the IPCC's 1.5°C pathway, which calls for drastic reductions in greenhouse gas emissions by 2030, 2040, and ultimately achieving net-zero emissions by 2050. Given the complexity of semiconductor manufacturing processes, which are the result of years of research and fine-tuning, this is a challenging task. However, the SCC has identified three key areas to focus on: enhancing transparency in the value chain, transitioning to low-carbon energy, and developing solutions for high Global Warming Potential (GWP) process gases. The SCC acknowledges that tackling high GWP gases, such as Perfluorinated Compounds (PFCs), is the most challenging aspect. These gases possess a global warming potential significantly higher than CO2, necessitating extensive research and development to find alternatives and develop efficient abatement technologies. Transitioning to low-carbon energy is also crucial as it accounts for over 80% of value chain emissions. The SCC asserts that the increasing energy efficiency is currently being overshadowed by heightened consumption, particularly in high manufacturing emissions regions such as Mainland China, Taiwan, South Korea, and Japan. Hence, an accelerated shift to low-carbon energy is required, facilitated by investments in on-site energy production and advocating for quicker grid transitions. Addressing the remaining emissions from material extraction and refining, which require high heat or unique chemical processes, forms another significant challenge. Collaborations with suppliers to reduce the carbon footprint of equipment and materials are vital. Additionally, direct manufacturing emissions, which constitute about 7% of value chain emissions, need to be addressed, despite the significant challenge given their integration into complex production methodologies. If the status quo is maintained, the SCC projects that the industry will emit 3.5 gigatons of carbon from 2019 to 2050, far exceeding the allocated 1.0 gigaton carbon budget. The SCC's full report shows that under the International Energy Agency Stated Policies Scenario (STEPS), emissions from the industry are expected to stabilize over the next two decades, but at a figure substantially above net-zero targets. The SCC and its working groups are leading the charge in sharing mitigation strategies for high GWP gases and promoting low-carbon energy adoption, particularly in Asian operations. They aim to steer the industry towards the 1.5°C pathway and provide a clear roadmap to hold the sector accountable in the pursuit of net-zero ambitions.